What was the Panic of 1819?

Question

Quizplus · Accepted Answer

The Panic of 1819 was the first major financial crisis in the United States.
Key Takeaway: The first major financial crisis in the United States was caused by the great availability of cheap land in the West. Western banks would loan sums of money to buyers, hoping that the price on the land would eventually rise. When it didn't, the banks lost their investments and were forced to foreclose on hundreds of Western farms. Because the banks were not able to return the investments to the Bank of the United States with currency, the circulating money supply became extremely restricted, leading to financial crisis.

What Was the Panic of 1819